"The Bull Roars Back in to Action in a Big Way. Bears Beware!"
2D, 15m. - Mar. 23 - There was a complete reversal of sentiment, direction, and momentum following the Treasury announcement of Private Investors being offered opportunities to buy discounted and guaranteed "Toxic Assets" from banks. This appears to be a shared risk by government and the private sector to again bail out some bad decisions on the part of government as well as Wall Street.The intraday market displayed a frequently seen pattern of symmetry. There was an initial move up followed by a midday sideways (flat chop) activity followed by a resumption of the upward move which is often a mirror image of the morning activity. That is what happened today.
5D, 30m. - Mar. 23 - The Bear Move of Friday which at first appeared so Solid vanished with the U.S. Treasury presenting a plan to "Privatize" the toxic debt of Banks. The market welcomed this action with open arms. The wiped out Bear Move is outlined in the Gold Spot.
20D. Hourly - Mar. 23 - Bear Potato gives way to the Bull Potato. The Bernanke Bubble was followed by a decline which appeared at first to be a resumption of a move to the downside. This has been followed by a U.S. Treasury decision to offer "toxic debt" owned by banks to the private sector with government guarantees or discounts (of course funded by the hard work and credit of the U. S. Citizen). The market liked it all.
3M. Daily - Mar. 23rd. - "V" is for Victory. There is a strong reversal that has developed over the last 10 days. It was seriously threatened Friday and looked like a Cooked Goose until the Treasury deal turned things around. Will this have a lasting effect? We will watch, wait, and see.
5D, 30m. - Mar. 23 - The Bear Move of Friday which at first appeared so Solid vanished with the U.S. Treasury presenting a plan to "Privatize" the toxic debt of Banks. The market welcomed this action with open arms. The wiped out Bear Move is outlined in the Gold Spot.
20D. Hourly - Mar. 23 - Bear Potato gives way to the Bull Potato. The Bernanke Bubble was followed by a decline which appeared at first to be a resumption of a move to the downside. This has been followed by a U.S. Treasury decision to offer "toxic debt" owned by banks to the private sector with government guarantees or discounts (of course funded by the hard work and credit of the U. S. Citizen). The market liked it all.
3M. Daily - Mar. 23rd. - "V" is for Victory. There is a strong reversal that has developed over the last 10 days. It was seriously threatened Friday and looked like a Cooked Goose until the Treasury deal turned things around. Will this have a lasting effect? We will watch, wait, and see.
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1 comment:
I would say it was not a complete reversal of sentiment, but rather a bounce off the 2-hour chart. On Friday, if you pull up a 20 day, 2-hour chart, you can see that it pulled back right to the 30 exponential moving average of that time frame.
So it was still 'barely bullish' intraday since it had not broken the 2-hour support. It seems like the break of 2-hour support confirms major moves down; before that break, you are still being supported by that 30 moving average.
Today seems like consolidation. I listened to Willie Vales on FX Shadow Trader. He is expecting a big move down soon which will be a strong pullback to then continue the present rally. I find it hard to imagine that we'd get a huge pullback since everyone seems to be expecting this to go to 8000 and beyond, but it seems that based on the 15-minute chart (slightly bearish moving averages), and the red macd on the 30 minute chart, and the waning momentum on the hourly chart, we could have more gentle pullback soon.
The 2-hour chart is bullish but not looking as strong as it did two days ago. One would think it would be tired and maybe need a rest! A pullback on that time frame would go to the 7450 area.
7550 is support in the hourly chart.
If we broke the 7450 area on the 2-hour chart, support would first be at 7380 (the lows of 3/22 and 3/23).
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